China’s state media announced on December 14th that Beijing has banned Australian coal import. This move is said to have serious consequences for the Australian economy. The reason for the ban is the tit for tat economic war both countries are in. Relations between Australia and China have descended in the wake of the former’s call for an independent inquiry into the origins of COVID-19.
Despite the ban and the economic toll it is taking, the ban also means that China, always in need of energy is already suffering from a lack of energy during its busiest season. Beijing has announced it is sourcing coal in other areas, but it has yet to lock in a reliable alternative source.
The China-Australia trade war reveals Beijing’s weakness and although could potentially decimate Australia, shows just how needy China is for energy. Without it, the rising dragon may not be able to lift off. Of course, a China that is in need of energy supplies means that it is a China who may grow increasingly belligerent. Unfortunately for many in the West, the developed world’s supply lines begin in China. Without energy feeding the Chinese factories, the West may also begin to feel the crunch.